# Kentucky Legislature Fails to Pass Major Housing, Data Center Bills  
**Published:** 2026-04-16T05:13:55.000Z  
**Source:** [Kentucky Lantern](https://kentuckylantern.com/2026/04/16/housing-data-center-legislation-dies-on-final-day-of-2026-session/)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://feeds.lexingtonky.news/article/kentucky-legislature-fails-to-pass-major-housing-data-center-bills

LEXINGTON, Ky. — Kentucky lawmakers ended the 2026 legislative session Wednesday without reaching agreement on major bills aimed at addressing the state's critical housing shortage and protecting ratepayers from bearing the costs of supplying electricity to data centers, according to reporting by the [Kentucky Lantern](https://kentuckylantern.com/2026/04/16/housing-data-center-legislation-dies-on-final-day-of-2026-session/).

The legislature's failure to pass Senate Bill 9, an omnibus housing measure that had grown from 14 pages to 60 pages, centered on a contentious provision that would have blocked local governments from regulating short-term rentals such as Airbnbs. [Kentucky Public Radio reported](https://www.lpm.org/news/2026-04-15/omnibus-gop-housing-bill-fails-as-kentucky-legislative-session-concludes) that the short-term rental language was "one of the stickier points," with some Republicans also opposing the provision.

The bill had been sponsored by [Sen. Robby Mills, R-Henderson](https://apps.legislature.ky.gov/record/26rs/sb9.html), and passed the Kentucky Senate in February with overwhelming support, 35-2. However, the House added the controversial short-term rental preemption along with several other provisions in its final form. Sen. Mills told reporters he was "slightly disappointed" the legislation failed but expressed confidence that lawmakers would continue discussing housing issues, including short-term rental regulations, throughout the year.

The failed bill included provisions widely supported by affordable housing advocates, including reduced parking minimums for housing developments, incentive programs for residential development, and expungement of eviction records. [Kentucky Chamber of Commerce President Ashli Watts](https://www.lpm.org/news/2026-04-15/omnibus-gop-housing-bill-fails-as-kentucky-legislative-session-concludes) expressed disappointment, stating that housing remains a critical issue for economic growth and competitiveness.

Kentucky faces [a significant housing shortage, with the Kentucky Housing Corporation reporting a gap of more than 206,000 housing units](https://spectrumnews1.com/ky/louisville/news/2026/01/13/housing-priorities-legislative-session), projections that could reach 287,000 units by 2029 without action.

Another legislative casualty was [House Bill 593](https://apps.legislature.ky.gov/record/26rs/hb593.html), which would have ensured data center companies pay for infrastructure needed to serve them. Sponsored by Rep. Josh Bray, R-Mount Vernon, the measure cleared the House in March but stalled in the Senate. The bill would have required utilities to issue regulations for data center customers and prevent "the subsidization of data center customers by non-data center customers through rates or by any other means."

[Experts have warned that if growth projected by Louisville Gas & Electric Company and Kentucky Utilities occurs, Kentucky could see as much as a 20–30% increase in electricity demand over the next 7–8 years](https://mtassociation.org/energy/energy-costs-data-center-development-in-kentucky/), requiring significant investments in energy infrastructure. Sen. Mills told reporters the primary barrier to SB 9 was the short-term rental provision, noting that a gubernatorial veto would have killed the bill for the year since lawmakers would not have an opportunity to override it.

The legislature did approve $15 million in one-time funding for housing construction and residential infrastructure as part of a $1.7 billion spending package and restored funding to public universities that had been earlier cut during the session.

## Sources

- [Kentucky Lantern](https://kentuckylantern.com/2026/04/16/housing-data-center-legislation-dies-on-final-day-of-2026-session/)
- [Kentucky Public Radio - Omnibus GOP housing bill fails as Kentucky legislative session concludes](https://www.lpm.org/news/2026-04-15/omnibus-gop-housing-bill-fails-as-kentucky-legislative-session-concludes)
- [Spectrum News 1 - Kentucky lawmakers target housing shortage with bills](https://spectrumnews1.com/ky/louisville/news/2026/01/13/housing-priorities-legislative-session)
- [Mountain Association - Energy Costs & Data Center Development in Kentucky](https://mtassociation.org/energy/energy-costs-data-center-development-in-kentucky/)

---

This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Kentucky Lantern, enriched with 3 web searches. The original source is available at https://kentuckylantern.com/2026/04/16/housing-data-center-legislation-dies-on-final-day-of-2026-session/.